On Wednesday, September 6, 2017, a federal court in Shreveport, Louisiana permanently barred defendants, Angelina Adams aka Angelina Morris and Angie’s Tax Services LLC, from preparing federal tax returns for others in the future. The defendants have consented to the permanent injunction.
The federal complaint against Angelina Adams of Princeton, Louisiana and her tax preparation business, which is located in Ringgold, Louisiana, accuses the defendants of preparing tax returns and understating liabilities and overstating refunds. The defendants allegedly fabricated Schedule Cs, Profit or Loss From Business, to obtain erroneous tax credits.
The defendants were also accused of claiming unsupported education credits. As an example, Angie’s Tax Service allegedly prepared a customer’s returns to show over $25,000 and $20,000 in Schedule C losses for an electrician business for the 2013 and 2014 tax years. The complaint suggests that the customer had did not have an electrician business.
In another case, Adams is accused of preparing a customer’s return to show $24,484 in unreimbursed employee business expenses, despite the client sustaining no out-of-pocket expenses related to her work. The complaint claims that the use of false unreimbursed business expenses by the defendants could have generated over $10 million in fraudulent deductions. Again, Angelina Adams and Angie’s Tax Service LLC have agreed to the permanent injunction.